ECD's Operation Holiday will be distributing holiday gifts to Pre-registered needy families from the community at. The Clinton Hill Community Center (CHCRC) y. It still not to late to make a donate a toy or cash or to help distribute the gifts. Call CHCRC FOR MORE INFORMATION: 973-802-1002. When registration closed on 12/7 CHCRC had requests for over 640 children. Thanks and Happy Holidays!!!
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CNN - Obama to push banks on mortgages
Sent from don@ecdonline.com's mobile device from http://www.cnn.com.
Obama to push banks on mortgages
As foreclosure casualties mount, the Obama administration is expected to announce additional steps on Monday to get long-term help for troubled borrowers.
Under the new initiative, the government will provide more resources for borrowers and will partner with organizations to offer homeowners assistance, a Treasury Department spokeswoman said. The plan also calls for increased transparency and accountability on the part of loan servicers.
The administration's move is its latest attempt to jumpstart its $75 billion loan modification plan, which many fear will fall far short of its goal to help up to 4 million delinquent homeowners.
While some 650,000 people have had their mortgage payments temporarily adjusted, only a fraction have received permanent modifications. More comprehensive data should be released soon, but preliminary figures show the extent of the problem.
For example, fewer than 5% of the trial adjustments on loans owned or guaranteed by Freddie Mac were converted to permanent modifications as of Sept. 30, according to the mortgage finance giant.
Looking more broadly, the figures are even lower. As of Sept. 1, only 1.26% of all trial adjustments were made permanent after three months, reported the Congressional Oversight Panel, which monitors the government's use of bailout funds.
Meanwhile, more and more people are falling into foreclosure. The combined percentage of loans in foreclosure or at least one payment past due was 14.4% in the third-quarter, according to the Mortgage Bankers Association. That's the highest the group has ever recorded.
The struggle to score more permanent modifications highlights the depth of the foreclosure problem: Officials are leaning on banks to offer more homeowners trial relief, but the real test will be whether homeowners will receive lasting help.
"No one is really sure why the conversion rate is so low," said Mike Zoller, assistant economist at Moody's Economy.com. "We're concerned these loans will eventually become foreclosures."
The problems mount
Under the president's plan, delinquent borrowers are put into trial modifications for several months to make sure they can handle the new payments and to give them time to submit their financial paperwork.
Borrowers that qualify for a long-term modifications can keep making the lower payments for five years. At that point, the interest rate will be set at the rate at the time of the adjustment, or about 5% today.
Loan servicers, however, say they are having trouble getting the necessary documents from borrowers, while homeowners maintain that their financial institutions are repeatedly losing the paperwork.
And once homeowners send in their forms, servicers may find these borrowers don't have enough income or have too much equity or savings to qualify. Or it may just be more profitable for the bank to foreclose on the home than modify the mortgage.
While the foreclosure rate has eased a bit recently, some experts fear foreclosures will start rising again unless more people receive permanent assistance.
"Everyone is going to be shocked at the low conversion rates from trial modifications to permanent modifications," said Guy Cecela, publisher of Inside Mortgage Finance, a trade publication. The president's program "won't result in a significant number of loans being modified and won't put a significant dent in foreclosure rates."
To be sure, the initiative is still in a relatively early stage. The number of trial modifications did not really start ramping up until the fall, after administration officials pushed servicers to get more people into the program.
More recently the administration and servicers have lessened the documentation requirements and even hired firms to go door-to-door to assist borrowers with collecting the necessary paperwork.
Critics, however, say these measures are not enough. The main problem is that the Obama plan does not address the key factor behind the rising foreclosure rate, which is soaring unemployment. The loan modification plan is not designed to help people with little or no income.
Who is getting help?
Announced in February and launched in April, the foreclosure prevention program seeks to put troubled homeowners into mortgages where the monthly payments are no more than 31% of the borrowers' pre-tax income.
Some 650,000 people have been placed in trial modifications, which were originally intended to last three months but recently lengthened to five. To get into the trial period, homeowners only need to meet some basic criteria, including owing less than $729,750 on their mortgage and having monthly payments above 31% of their pre-tax income.
During the trial period, borrowers must send in the documentation needed to verify their income and expenses, including tax returns, pay stubs and bank statements. Homeowners must also be timely with their trial payments to receive long-term adjustments.
At JPMorgan Chase, about 92,500 borrowers, or just over half of those in the president's loan modification program, have made more than three payments. But only 26% of those have also submitted all of the required documents.
"We're not sure why we're not getting the documents from people," said Chase Spokesman Tom Kelly, who declined to say how many permanent modifications the bank has completed.
Citigroup, meanwhile, has converted about 1,800 borrowers into permanent modifications, said Sanjiv Das, head of CitiMortgage. The servicer has about 89,000 in trial modifications.
Citi, too, is having trouble with the documents. Often, borrowers send in paperwork that is not complete or has errors, Das said.
But Treasury's recent relaxation of the rules has allowed Citi to ramp up its efforts. In particular, servicers are now able to accept electronic signatures on tax documents instead of having to secure signed forms. As a result, the number of Citi borrowers whose files are complete has soared to 11,000, from 3,500 only three weeks ago.
"It will go up substantially" said Das, who expects Citi to place between 5,000 and 6,000 borrowers in permanent modifications by year's end.
A growing number of servicers are hiring companies to knock on borrowers' doors in hopes of getting the required income and tax statements.
"This will give [borrowers] someone they can talk to who is reliable and knowledgeable so they can turn that trial period into a permanent modification," said Brad German, a spokesman for Freddie Mac, which in late September hired a firm to work with servicers to gather the needed documents from homeowners.
Many servicers, including Citi and Chase, are working with such firms. Others have tried other ways to entice borrowers to provide their documents.
Saxon Mortgage Services, which leads the pack with 44% of its eligible delinquent borrowers in trial modifications, has offered homeowners in California and Florida $25 gift cards to come to company-sponsored foreclosure prevention events with paperwork in hand.
Only about 15% of the borrowers took Saxon up on its offer, a spokesman said.
Obama to push banks on mortgages
As foreclosure casualties mount, the Obama administration is expected to announce additional steps on Monday to get long-term help for troubled borrowers.
Under the new initiative, the government will provide more resources for borrowers and will partner with organizations to offer homeowners assistance, a Treasury Department spokeswoman said. The plan also calls for increased transparency and accountability on the part of loan servicers.
The administration's move is its latest attempt to jumpstart its $75 billion loan modification plan, which many fear will fall far short of its goal to help up to 4 million delinquent homeowners.
While some 650,000 people have had their mortgage payments temporarily adjusted, only a fraction have received permanent modifications. More comprehensive data should be released soon, but preliminary figures show the extent of the problem.
For example, fewer than 5% of the trial adjustments on loans owned or guaranteed by Freddie Mac were converted to permanent modifications as of Sept. 30, according to the mortgage finance giant.
Looking more broadly, the figures are even lower. As of Sept. 1, only 1.26% of all trial adjustments were made permanent after three months, reported the Congressional Oversight Panel, which monitors the government's use of bailout funds.
Meanwhile, more and more people are falling into foreclosure. The combined percentage of loans in foreclosure or at least one payment past due was 14.4% in the third-quarter, according to the Mortgage Bankers Association. That's the highest the group has ever recorded.
The struggle to score more permanent modifications highlights the depth of the foreclosure problem: Officials are leaning on banks to offer more homeowners trial relief, but the real test will be whether homeowners will receive lasting help.
"No one is really sure why the conversion rate is so low," said Mike Zoller, assistant economist at Moody's Economy.com. "We're concerned these loans will eventually become foreclosures."
The problems mount
Under the president's plan, delinquent borrowers are put into trial modifications for several months to make sure they can handle the new payments and to give them time to submit their financial paperwork.
Borrowers that qualify for a long-term modifications can keep making the lower payments for five years. At that point, the interest rate will be set at the rate at the time of the adjustment, or about 5% today.
Loan servicers, however, say they are having trouble getting the necessary documents from borrowers, while homeowners maintain that their financial institutions are repeatedly losing the paperwork.
And once homeowners send in their forms, servicers may find these borrowers don't have enough income or have too much equity or savings to qualify. Or it may just be more profitable for the bank to foreclose on the home than modify the mortgage.
While the foreclosure rate has eased a bit recently, some experts fear foreclosures will start rising again unless more people receive permanent assistance.
"Everyone is going to be shocked at the low conversion rates from trial modifications to permanent modifications," said Guy Cecela, publisher of Inside Mortgage Finance, a trade publication. The president's program "won't result in a significant number of loans being modified and won't put a significant dent in foreclosure rates."
To be sure, the initiative is still in a relatively early stage. The number of trial modifications did not really start ramping up until the fall, after administration officials pushed servicers to get more people into the program.
More recently the administration and servicers have lessened the documentation requirements and even hired firms to go door-to-door to assist borrowers with collecting the necessary paperwork.
Critics, however, say these measures are not enough. The main problem is that the Obama plan does not address the key factor behind the rising foreclosure rate, which is soaring unemployment. The loan modification plan is not designed to help people with little or no income.
Who is getting help?
Announced in February and launched in April, the foreclosure prevention program seeks to put troubled homeowners into mortgages where the monthly payments are no more than 31% of the borrowers' pre-tax income.
Some 650,000 people have been placed in trial modifications, which were originally intended to last three months but recently lengthened to five. To get into the trial period, homeowners only need to meet some basic criteria, including owing less than $729,750 on their mortgage and having monthly payments above 31% of their pre-tax income.
During the trial period, borrowers must send in the documentation needed to verify their income and expenses, including tax returns, pay stubs and bank statements. Homeowners must also be timely with their trial payments to receive long-term adjustments.
At JPMorgan Chase, about 92,500 borrowers, or just over half of those in the president's loan modification program, have made more than three payments. But only 26% of those have also submitted all of the required documents.
"We're not sure why we're not getting the documents from people," said Chase Spokesman Tom Kelly, who declined to say how many permanent modifications the bank has completed.
Citigroup, meanwhile, has converted about 1,800 borrowers into permanent modifications, said Sanjiv Das, head of CitiMortgage. The servicer has about 89,000 in trial modifications.
Citi, too, is having trouble with the documents. Often, borrowers send in paperwork that is not complete or has errors, Das said.
But Treasury's recent relaxation of the rules has allowed Citi to ramp up its efforts. In particular, servicers are now able to accept electronic signatures on tax documents instead of having to secure signed forms. As a result, the number of Citi borrowers whose files are complete has soared to 11,000, from 3,500 only three weeks ago.
"It will go up substantially" said Das, who expects Citi to place between 5,000 and 6,000 borrowers in permanent modifications by year's end.
A growing number of servicers are hiring companies to knock on borrowers' doors in hopes of getting the required income and tax statements.
"This will give [borrowers] someone they can talk to who is reliable and knowledgeable so they can turn that trial period into a permanent modification," said Brad German, a spokesman for Freddie Mac, which in late September hired a firm to work with servicers to gather the needed documents from homeowners.
Many servicers, including Citi and Chase, are working with such firms. Others have tried other ways to entice borrowers to provide their documents.
Saxon Mortgage Services, which leads the pack with 44% of its eligible delinquent borrowers in trial modifications, has offered homeowners in California and Florida $25 gift cards to come to company-sponsored foreclosure prevention events with paperwork in hand.
Only about 15% of the borrowers took Saxon up on its offer, a spokesman said.
Advocate to Talk About Tenant Rights
New Jersey Public Advocate Ronald Chen, banni with the City of Newark and The Newark Essex Foreclosure Taskforce will be at the Clinton Hill Community Resource Center (CHCRConline.com) this morning, October 21, at 10:30 to discuss foreclosure and tenant rights. All are welcome.
Don Baldyga-ECD
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Multimedia message
Mayor Booker Dedicates Hawthorne Affordable Rentals
August 20 - Mayor Booker Cuts Ribbon on Affordable Housing
MAYOR BOOKER OPENS EPISCOPAL CHURCH RENTAL PROJECT;PROVIDES EIGHT UNITS OF AFFORDABLE HOUSING
Development completes 21-unit Low Income Housing Tax credit project; Also includes 10 apartments for formerly homeless households
(More photos ECD facebook page)
Newark, NJ - August 20, 2009 - Mayor Cory A. Booker, Deputy Mayor of Housing and Economic Development Stefan Pryor, Director of Housing and Real Estate Mike Meyer, Episcopal Community Development Corporation Executive Director Gerard Haizel and representatives from the New Jersey Housing Mortgage Finance Agency joined with South Ward residents today to cut the ribbon to open a new eight-unit affordable housing rental development at 132-136 Hawthorne Avenue, this morning.
The new project includes two one-bedroom units, two two-bedroom units, and four three-bedroom units. The building is the final phase of a 21-unit Low Income Housing tax credit project sponsored by Episcopal Community Development, including 10 homes for formerly homeless households, sponsored by Apostle’s House, which opened in Fall 2008. The City provided $1.3 million in City HOME funds for all 21 units and a long-term property tax abatement to support the project.
“This is a tremendous day. Day by day, block by block, brick by brick, we are building a stronger, safer and prouder city. This project is especially important to me on a personal level because I live on this block and passed by the blight that existed here previously every day. Today we are seeing the power that can happen as a result of our commitment to make Newark a place for everyone and now each of these apartment units are homes to a family in need so they can fulfill their dreams,” said Mayor Booker.
“All units are unusually large and light, intended to offer residents an alternative to dark, small dwellings historically reserved for people of less means,” said Mr. Haizel. “This exceptionally well-crafted facility has also transformed what was a long blighted corner, which is a hallmark of ECD’s neighborhood stabilization strategy.”
The building is a brick structure that has transformed a formerly blighted corner. This strategy to transform neighborhoods with exceptionally well-crafted facilities is becoming ECD’s trademark.
“Growing up in the South Ward, I remember this building as always being a blight in our community. Today is a blessing for these residents who were in desperate need of affordable housing. It’s exciting to see an emphasis on development that has a positive impact on the lives of our South Ward residents,” said South Ward Council Member Oscar James II, in a statement.
Gail Eunice, a new resident, moved in with her 28-year-old daughter. “We need more developments like these. Unemployment is high and it’s a challenge to get affordable housing or anything in today’s economy. I’m so happy I filled out the application and they notified me that I qualified. I’m now home!” she said.
The Stratford, a nine-unit brick building completed in June 2008 as permanent housing for formerly homeless families on Avon Avenue at 20th Street, had a similar effect. ECD is building a 23-unit “kinship care” facility at the same Avon Avenue intersection for grandparents raising grandchildren, to be completed in 2010.
ECD was the recent recipient of $4.4 million in federal Neighborhood Stabilization Program funding to rehabilitate over 60 foreclosed properties for sale to low- and moderate-income families in Newark and Irvington.
“Many of these rental projects are supported by low income housing tax credits. This is a very important but complicated funding source and we are fortunate to have experienced partners like NJHMA and ECD to make these affordable housing developments a reality,” said Director Meyer.
“Today is a real testament to the city and the people who are working hard in Newark to create more affordable housing opportunities. I’m so happy for the new tenants who will be walking through these doors into their new beautiful homes,” said Trace Battis, Chief of Programs for the New Jersey Housing Mortgage Finance Agency.
The Booker administration has made the creation of affordable and low-income housing one of its highest priorities since taking office in July 2006. Through partnerships with such organizations as ECD and philanthropists like musician Jon Bon Jovi and NBA star and Newark native Shaquille O’Neal, the City of Newark has renovated or created hundreds of affordable and low-income housing developments throughout the City.
Contact: Newark Press Information Office - (973) 733-8004
PressOffice@ci.newark.nj.us
-NEWARK -
-NEWARK -
Join Mayor Booker at our Grand Opening-Thursday August 20 @10:30 AM
Click on the picture for a larger view
Judicial Mediation Program
Check out this YouTube Clip on New Jersey's Judicial Foreclosure Mediation Program.
Pass it on to anyone you know who may need help!!!
Pass it on to anyone you know who may need help!!!
Newark/Essex Task Force Rocks Foreclosure
While Newark was rocking with the sounds of the Lincoln Park Music Festival, the Newark Essex Foreclosure Task Force was on hand to let at risk homeowners and tenants know their options and right.
Special Thanks to the volunteers from the graduating class of the Lincoln Park Green Training Program and from the City of Newark.
Hope to see you at our next outing!!!
NSP Awards Announced For NJ
Grantee / Municipality / County / Award
Interfaith Neighbors, Inc. / Asbury Park / Monmouth / $2,500,000
Buena Vista Township / Buena Vista / Atlantic / $826,908
Burlington City / Burlington City / Burlington / $1,672,675
RPM Development, LLC / Camden / Camden / $2,500,000
Parkside BCIP, Inc. / Camden / Camden / $350,000
Heart of Camden / Camden / Camden / $1,337,302
Beacon.Org, Inc. / Clementon / Camden / $622,716
HANDS / East Orange / Essex / $651,233
City of Elizabeth* / Elizabeth / Union / $750,000
City of Elizabeth* / Elizabeth / Union / $240,000
City of Elizabeth* / Elizabeth / Union / $447,139
City of Elizabeth* / Elizabeth / Union / $720,000
City of Elizabeth* / Elizabeth / Union / $500,000
City of Elizabeth* / Elizabeth / Union / $600,000
City of Elizabeth* / Elizabeth / Union / $349,317
City of Elizabeth* / Elizabeth / Union / $203,000
Allies, Inc. / Hamilton / Mercer / $625,000
Brand New Day, Inc. / Irvington / Essex / $2,000,000
Episcopal Community Development, Inc. / Irvington / Essex / $1,750,000
Jersey City / Jersey City / Hudson / $1,700,000
Episcopal Community Development, Inc. / Newark / Essex / $1,950,000
Newark PHA / Newark / Essex / $2,500,000
Orange City Township / Orange / Essex / $1,500,000
Passaic City West / Passaic / Passaic / $2,437,775
Paterson Habitat for Humanity / Paterson / Passaic / $1,923,750
Perth Amboy / Perth Amboy / Middlesex / $1,700,000
Faith, Bricks & Mortar, Inc. / Plainfield / Union / $2,500,000
Pleasantville Housing Authority / Pleasantville / Atlantic / $1,773,000
Domus Corporation / Rahway / Union / $170,000
Roselle Borough / Roselle / Union / $2,500,000
Trenton City / Trenton / Mercer / $2,500,000
Willingboro Township / Willingboro / Burlington / $2,000,000
Woodbine Borough / Woodbine / Cape May / $689,657
Cumberland County Empowerment Zone / Cumberland / $2,500,000
Gloucester County / Gloucester / $2,500,000
Total $49,489,422
Interfaith Neighbors, Inc. / Asbury Park / Monmouth / $2,500,000
Buena Vista Township / Buena Vista / Atlantic / $826,908
Burlington City / Burlington City / Burlington / $1,672,675
RPM Development, LLC / Camden / Camden / $2,500,000
Parkside BCIP, Inc. / Camden / Camden / $350,000
Heart of Camden / Camden / Camden / $1,337,302
Beacon.Org, Inc. / Clementon / Camden / $622,716
HANDS / East Orange / Essex / $651,233
City of Elizabeth* / Elizabeth / Union / $750,000
City of Elizabeth* / Elizabeth / Union / $240,000
City of Elizabeth* / Elizabeth / Union / $447,139
City of Elizabeth* / Elizabeth / Union / $720,000
City of Elizabeth* / Elizabeth / Union / $500,000
City of Elizabeth* / Elizabeth / Union / $600,000
City of Elizabeth* / Elizabeth / Union / $349,317
City of Elizabeth* / Elizabeth / Union / $203,000
Allies, Inc. / Hamilton / Mercer / $625,000
Brand New Day, Inc. / Irvington / Essex / $2,000,000
Episcopal Community Development, Inc. / Irvington / Essex / $1,750,000
Jersey City / Jersey City / Hudson / $1,700,000
Episcopal Community Development, Inc. / Newark / Essex / $1,950,000
Newark PHA / Newark / Essex / $2,500,000
Orange City Township / Orange / Essex / $1,500,000
Passaic City West / Passaic / Passaic / $2,437,775
Paterson Habitat for Humanity / Paterson / Passaic / $1,923,750
Perth Amboy / Perth Amboy / Middlesex / $1,700,000
Faith, Bricks & Mortar, Inc. / Plainfield / Union / $2,500,000
Pleasantville Housing Authority / Pleasantville / Atlantic / $1,773,000
Domus Corporation / Rahway / Union / $170,000
Roselle Borough / Roselle / Union / $2,500,000
Trenton City / Trenton / Mercer / $2,500,000
Willingboro Township / Willingboro / Burlington / $2,000,000
Woodbine Borough / Woodbine / Cape May / $689,657
Cumberland County Empowerment Zone / Cumberland / $2,500,000
Gloucester County / Gloucester / $2,500,000
Total $49,489,422
Been A While
April turned out to be a very busy month, both work and personally so writing has been slipped by the wayside. But Now I'm back so here's an update:
Neighborhood Stabilization Program-Time Waits for No Man
While there is little doubt that foreclosures are devastating our communities across the our country, many organizations seem paralyzed waiting for "stimulus" dollars and the like to become available. It seems that because of the time and effort that we all have been spending chasing NSP dollars, funds that are critical to being able to really make a substantive difference in our communities, the DOLLARS are not NSP, they are fuel for make NSP happen faster.
While we wait, are neighborhoods continue to deteriorate. While out on a street in Clinton Hill in Newark a few weeks ago, I had the honor to meet a resident who has lived in his well kept home since 1953, over 55 years. This was a man who served his country in WWII, the holder of a Bronze Star having participated in the invasions of Guadalcanal and the Philippines in the Pacific Theater. He spent decades as a contractor and brick layer in the City of Newark. Still proud of the brick porch he had built leading to HIS porch. Does this man not deserve to live out his days in in dignity a neighborhood free of blight and the crime that it brings with it.
We have taken to heart the distress in the neighborhood we serve and are no longer willing to sit idly by waiting for other as peoples lives are marginalized. As of this writing we have begun work one one of the foreclosed abandoned homes we own and will have renovations on two more underway by the end of this week.
I'll keep you updated on the progress of these homes.
Neighborhood Stabilization Program-Time Waits for No Man
While there is little doubt that foreclosures are devastating our communities across the our country, many organizations seem paralyzed waiting for "stimulus" dollars and the like to become available. It seems that because of the time and effort that we all have been spending chasing NSP dollars, funds that are critical to being able to really make a substantive difference in our communities, the DOLLARS are not NSP, they are fuel for make NSP happen faster.
While we wait, are neighborhoods continue to deteriorate. While out on a street in Clinton Hill in Newark a few weeks ago, I had the honor to meet a resident who has lived in his well kept home since 1953, over 55 years. This was a man who served his country in WWII, the holder of a Bronze Star having participated in the invasions of Guadalcanal and the Philippines in the Pacific Theater. He spent decades as a contractor and brick layer in the City of Newark. Still proud of the brick porch he had built leading to HIS porch. Does this man not deserve to live out his days in in dignity a neighborhood free of blight and the crime that it brings with it.
We have taken to heart the distress in the neighborhood we serve and are no longer willing to sit idly by waiting for other as peoples lives are marginalized. As of this writing we have begun work one one of the foreclosed abandoned homes we own and will have renovations on two more underway by the end of this week.
I'll keep you updated on the progress of these homes.
Coming soon!!!
Foreclosure Task Force-Events,Mediation, Walk AroundsAPRIL 3-BRING HOPE HOME EVENT-SPREAD THE WORD
LET ANYONE YOU THINK MIGHT NEED HELP KNOW ABOUT THIS EVENT.
ANYONE IN TROUBLE IS WELCOME
WE NEED YOUR HELP!!!!
CLICK ON THE FLYER FOR A FULL SIZE VERSION
THE RISING TIDES
Like the rest of the nation I'm watching the Red River, waiting to see the fate of Fargo, North Dakota and holding my breath hoping and praying for the best.
I have a special empathy for anyone in jeopardy of losing their home for what ever reason. Probably because I see people on a daily basis coming in and out of our offices in jeopardy of losing their home because of the raging tide that's FORECLOSURE. And everyday that I spend in out in the communities we serve I see the devistation that is caused by FORECLOSURE. The damage is just real as what the Red River if it floods Frago.
I felt it might be approriate to re-post an article I posted when I first started this page. So here we go:
As the Midwest contends with flood waters and wildfires rage across the west, another disaster is ravaging the families across the nation.
FORELOSURE.
Just as surely as flood waters wash homes of their foundations and fire burns homes to the ground, foreclosure is razing homes all across the nation. In some placing the destruction is metaphoric while in others, like our inner cities, it is a physical reality.
How can foreclosures compare with floods and fires? Isn’t foreclosure a human-made issue while the others are natural phenomenon? Didn’t the families losing their homes to foreclosure get themselves in trouble? The answer to these questions is yes and no.
All three of these disasters have both natural and human-generated components. While the rain causes the river to overflow its banks and flood homes, man-made structures cause water to flow away from its natural path. While lighting may cause the outbreak of fires, human beings building in areas that have been susceptible to wildfires for millennia take a natural event and turn it into a disaster. A family that to want to improve its standard of living runs afoul of the manmade changes in the fundamental principles of our economy, and that is what has brought these families to and ultimately over the precipice that is foreclosure.
The physical and emotional toll of foreclosure on a family and a community is just as severe as the toll of flood or fire. A home that has been ravaged by the theft of copper and other valuables or burned to the ground by careless squatters trying to keep warm is no less destroyed than if the damaged had been caused by other means. The emotional devastation to the family that loses its home is no less real than if the home had been lost in a flood or fire.
In many ways the loss of home through foreclosure is even more insidious. First, the disaster itself is invisible to the uninitiated. With foreclosure there is no rising water or smoke to tell others around you that trouble is coming to your house. With flood and fire there is no stigma attached to the impending loss of the home, there is no shame in the approaching disaster. If the fires coming, you wouldn’t hesitate to ask your neighbor for a hose but when foreclosure is coming, do we ask for help? In fact, more than half of the families facing the disaster of foreclosure never ask for help and without the telltale signs even a concerned neighbor, friend or family member doesn’t know that help is needed.
When a so called “natural disaster” occurs, society rushes to the aid of those in jeopardy and then looks into what caused the disaster. Send in the National Guard. Mobilize the Red Cross and the Salvation Army. Get FEMA on the job. Appropriate billions overnight. But in the case of foreclosure, much of society has taken to pointing an accusing finger at those who are in peril and our government has been busy with weak “voluntary” mortgage market reforms, fixing blame and bailing the financial markets. But where is the National Guard, the Red Cross, the Salvation Army, FEMA?
Newark is an area that has been hit exceptionally hard by this disaster. After decades of languishing, Newark was finally on its way into the renaissance that so many had hoped for for so long. And now decades of toil are being desimated in a matter of months if not weeks. The empirical data surround this onslaught is astonishing to say the least.
With a predominance of multifamily homes, every dwelling lost to foreclosure and the ensuing destruction represents, for the most part, the loss of two affordable housing units. Add to that an average family size of just over 3.5; each foreclosure is displacing approximately seven individuals.
During calendar year 2007 approximately 350 dwellings were sold at Sheriff Sales. This number does not take into account properties that were transferred through either a short sale or deed in lieu. For discussions purposes, I’ll assume the total number of dwellings lost to foreclosure for 2007 approximates 400, or 800 affordable housing units, or 2,800 residents permanently displaced. In 2008 we are anticipating significant increase in the number of foreclosure filings. I estimate for 2008 dwellings lost to foreclosure will exceed 500 additional homes in the City. That is another 3,500 residents permanently displaced. That means in the course of two years, over 2% of Newark’s population would have suffered from the trauma of losing their homes through the disaster of foreclosure.
Another symptom of the Foreclosure Disaster is the cost it is having on our already strained healthcare system. The emotional and psychological effects on the family members as they try to stave off a foreclosure can be overwhelming. Not only will the stress manifest itself in physical symptoms such as headaches and stomach pains, but also, more alarmingly, in increased anxiety and depression. People who have pre-existing mental health issue are even more susceptible to the stress of a foreclosure.
As the foreclosure disaster continues, the human toll associated with it will continue to rise. Children displaced from their schools will lose crucial educational stability and opportunity. Families may choose hunger over homelessness for months leading up to a foreclosure. Some will end up on the street or in the shelter systems. Some who can least deal with the stress depression and anxiety have tragically chosen suicide over dealing with the feelings of failure and embarrassment of losing the family home.
Finally, aside from the personal and social consequences of foreclosure, let’s look at some of the financial consequences. Properties lost to foreclosure will result in a significant loss in tax revenues. This loss will have to be made up somewhere, which means an increase on the remaining property owners. As houses are foreclosed and abandoned, there will be a significant decrease in the value of the rest of the homes in the affected community. It is estimated that a lone abandoned home can decrease the values of the houses on that block by an average of 15%. And as housing values continue to drop and the tax burden rises, more people will be in jeopardy of foreclosure.
I am not trying to minimize the loss of those who have lost their homes in the fires and floods that have ravaged parts of our nation. On the contrary, I want it understood that the devastation caused by foreclosure is as real and as painful as that caused by fire and flood. We should give those facing foreclosure the same chance that we give other Americans facing the loss of their home.
C.H.C.R.C. Joins the ECD Family of Services
The CHCRC represents the culmination of several years of planning and hard work by community residents who articulated a clear vision for their community, which included such a program and facility. The CHCRC is located at 620 Clinton Avenue in what was the Blessed Sacrament Convent.
The CHCRC is one of four initiatives funded by the Wachovia Regional Foundation all aimed at furthering the revitalization of the Clinton Hill community. Additional funding was provided by the City of Newark and the Office of South Ward Councilman, Oscar James.
As its name suggests, the CHCRC will serve as a one stop resource for residents to access information, referrals and services all aimed at improving their quality of life. A broad range of services geared specifically to families is planned, including after school and mentoring programs for children as well as access to computers and specialized training for parents. Screening will be offered to all individuals and families visiting the facility, to assess their eligibility for various support programs and services.
The Center will also provide a variety of flexible meeting spaces for block associations and other community based organizations to hold their meetings and public events
The CHCRC is one of four initiatives funded by the Wachovia Regional Foundation all aimed at furthering the revitalization of the Clinton Hill community. Additional funding was provided by the City of Newark and the Office of South Ward Councilman, Oscar James.
As its name suggests, the CHCRC will serve as a one stop resource for residents to access information, referrals and services all aimed at improving their quality of life. A broad range of services geared specifically to families is planned, including after school and mentoring programs for children as well as access to computers and specialized training for parents. Screening will be offered to all individuals and families visiting the facility, to assess their eligibility for various support programs and services.
The Center will also provide a variety of flexible meeting spaces for block associations and other community based organizations to hold their meetings and public events
A WARM THANK YOU TO THE HARDY
On this sunny but cold day, a band of hardy volunteers descended on Clinton Hill in Newark's South Ward to reach out to the community with information on resources available to both homeowners and tenants facing the perils of foreclosure.THANKS TO YOU ALL!!!!!
The Usual Suspects:
City of Newark Division of Housing and Real Estate (http://www.ci.newark.nj.us/)
Rutgers-Edward J. Bloustein School of Planning and Public Policy (http://www.policy.rutgers.edu/)
The New Comers:
US Department of Housing and Urban Development (http://www.hud.gov/)
Volunteer Lawyers for Justice (http://www.volunteerlawyersnj.org/)
Knights of Columbus Council 6139 (http://www.kofc6139.org/)
St. Andrew's Episcopal Church, 933 South 17th Street, 07108 973-375-3012
The Hardy Media:
New Jersey Network (http://www.njn.net/)
The Star Ledger (www.nj.com/starledger)
Special Thanks:
Mayor's Communication Office
Gerard Haizel
Stephanie Greenwood
Raising The Profile of Foreclosure
BRINGING HOPE HOMELast Wednesday, February 11, Queen Latifa along with Wyclef Jean and Angie Martinez helped kick off the Bring Hope Home campaign to raise public awareness of the about many avenues that exist for homeowners that are facing foreclosure.
The events of Tuesday started with a tour of Newark, highlighting the fact that foreclosure is effecting every neighborhood of the city, as it effects every neighborhood across the County, the State and the Country.
Following the tour and visits with some homeowners that were helped save their homes foreclosure, a round table was held City Without Walls to further discuss how best to serve those in danger of foreclosure. The forum was opened by statements from Newark Mayor Cory Booker and New Jersey Governor Jon Corzine.
See comments by Queen Latifa by clicking the YouTube Link above.
Watch this site for announcements of follow up events.
Walk Arounds Are Back!!!!!!!!!!!!!!!
February 4, 2009 South Ironbound, 1PM:
This Tuesday the Newark/Essex Foreclosure Task Force is bringing back its hugely successful Neighborhood Walk Arounds.
We are proud to have the Ironbound Community Corporation (ICC). Based in the Ironbound section of Newark, ICC has been serving its residents for nearly 40 years.
For more information on tis or future events or to volunteer, call Don Baldyga or Al-Nisa White at ECD (973) 430-9972 alnisa@ecdonline.org
THERE IS LOTS OF EXCITING NEWS COMING. CHECK BACK OFTEN.
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CALLED TO SERVE
Yesterday I looked back to words from those who have come before.
Today I look at the challenge put forth to all of us.
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As we consider the road that unfolds before us, we remember with humble gratitude those brave Americans who, at this very hour, patrol far-off deserts and distant mountains. They have something to tell us today, just as the fallen heroes who lie in Arlington whisper through the ages. We honor them not only because they are guardians of our liberty, but because they embody the spirit of service; a willingness to find meaning in something greater than themselves. And yet, at this moment - a moment that will define a generation - it is precisely this spirit that must inhabit us all.
For as much as government can do and must do, it is ultimately the faith and determination of the American people upon which this nation relies. It is the kindness to take in a stranger when the levees break, the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours. It is the firefighter's courage to storm a stairway filled with smoke, but also a parent's willingness to nurture a child, that finally decides our fate.
Barack Obama-January 20, 2009
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The gauntlylet has been thrown down.
Do we have the courage to pick it up?
That's our challenge!
REMEMBERANCES
As we stand at the precipice, we see from this precarious place a new hope. Here are some words from others that have in this same place and turned the tide of what seemed insurmountable odds.
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But, in a larger sense, we cannot dedicate -- we cannot consecrate -- we cannot hallow -- this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember what we say here, but it can never forget what they did here. It is for us the living, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us -- that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion -- that we here highly resolve that these dead shall not have died in vain -- that this nation, under God, shall have a new birth of freedom -- and that government of the people, by the people, for the people, shall not perish from the earth.
Abraham Lincoln, November 19, 1863
But, in a larger sense, we cannot dedicate -- we cannot consecrate -- we cannot hallow -- this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember what we say here, but it can never forget what they did here. It is for us the living, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us -- that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion -- that we here highly resolve that these dead shall not have died in vain -- that this nation, under God, shall have a new birth of freedom -- and that government of the people, by the people, for the people, shall not perish from the earth.
Abraham Lincoln, November 19, 1863
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I am certain that my fellow Americans expect that on my induction into the Presidency I will address them with a candor and a decision which the present situation of our people impel. This is preeminently the time to speak the truth, the whole truth, frankly and boldly. Nor need we shrink from honestly facing conditions in our country today. This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory. I am convinced that you will again give that support to leadership in these critical days.
Franklin D. Roosevelt, Inaugural Address, March 4, 1933,
Franklin D. Roosevelt, Inaugural Address, March 4, 1933,
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In the long history of the world, only a few generations have been granted the role of defending freedom in its hour of maximum danger. I do not shrink from this responsibility—I welcome it. I do not believe that any of us would exchange places with any other people or any other generation. The energy, the faith, the devotion which we bring to this endeavor will light our country and all who serve it—and the glow from that fire can truly light the world.
And so, my fellow Americans: ask not what your country can do for you—ask what you can do for your country.
My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man.
Finally, whether you are citizens of America or citizens of the world, ask of us the same high standards of strength and sacrifice which we ask of you. With a good conscience our only sure reward, with history the final judge of our deeds, let us go forth to lead the land we love, asking His blessing and His help, but knowing that here on earth God's work must truly be our own.
John F. Kennedy, Inaugural Address, Friday, January 20, 1961
In the long history of the world, only a few generations have been granted the role of defending freedom in its hour of maximum danger. I do not shrink from this responsibility—I welcome it. I do not believe that any of us would exchange places with any other people or any other generation. The energy, the faith, the devotion which we bring to this endeavor will light our country and all who serve it—and the glow from that fire can truly light the world.
And so, my fellow Americans: ask not what your country can do for you—ask what you can do for your country.
My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man.
Finally, whether you are citizens of America or citizens of the world, ask of us the same high standards of strength and sacrifice which we ask of you. With a good conscience our only sure reward, with history the final judge of our deeds, let us go forth to lead the land we love, asking His blessing and His help, but knowing that here on earth God's work must truly be our own.
John F. Kennedy, Inaugural Address, Friday, January 20, 1961
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"I have a dream that one day this nation will rise up and live out the true meaning of its creed: 'We hold these truths to be self-evident, that all men are created equal.'"
"I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin, but by the content of their character."
"I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at a table of brotherhood."
"This is our hope. This is the faith that I go back to the South with. With this faith we will be able to hew out of the mountain of despair a stone of hope. With this faith we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood. With this faith we will be able to work together, to pray together, to struggle together, to go to jail together, to stand up for freedom together, knowing that we will be free one day."
"Now is the time to lift our nation from the quicksand of racial injustice to the solid rock of brotherhood. Now is the time to make justice a reality for all of God's children."
"Let freedom ring. And when this happens, and when we allow freedom ring—when we let it ring from every village and every hamlet, from every state and every city, we will be able to speed up that day when all of God's children—black men and white men, Jews and Gentiles, Protestants and Catholics—will be able to join hands and sing in the words of the old Negro spiritual: "Free at last! Free at last! Thank God Almighty, we are free at last!"
Martin Luther King, Jr., August 28, 1963
"I have a dream that one day this nation will rise up and live out the true meaning of its creed: 'We hold these truths to be self-evident, that all men are created equal.'"
"I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin, but by the content of their character."
"I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at a table of brotherhood."
"This is our hope. This is the faith that I go back to the South with. With this faith we will be able to hew out of the mountain of despair a stone of hope. With this faith we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood. With this faith we will be able to work together, to pray together, to struggle together, to go to jail together, to stand up for freedom together, knowing that we will be free one day."
"Now is the time to lift our nation from the quicksand of racial injustice to the solid rock of brotherhood. Now is the time to make justice a reality for all of God's children."
"Let freedom ring. And when this happens, and when we allow freedom ring—when we let it ring from every village and every hamlet, from every state and every city, we will be able to speed up that day when all of God's children—black men and white men, Jews and Gentiles, Protestants and Catholics—will be able to join hands and sing in the words of the old Negro spiritual: "Free at last! Free at last! Thank God Almighty, we are free at last!"
Martin Luther King, Jr., August 28, 1963
Catch-22: The Economic Conundrum for Not-For-Profits
The More The Need The Less The Means
Catch-22
So you wondering what a book from 1961 has to do with economics and not-for-profits. Fair enough.
Joseph Heller’s 1961 literary classic revolves around the concept of circular logic built mutually exclusive desirable outcomes.
In the Case of the Not-For-Profit:
The worse the economy gets the more the most vulnerable of our clients need us. The more they need us the more resources we need to serve them.
The worse the economy gets the fewer resources our traditional financial supporters have available. The less supporters have they less they support our efforts.
So the more the most vulnerable need, the fewer resources we have to meet those needs.
The Conundrum
If our resources are less, then do we provide less to those who need more or do we try to do more with less?
I contend that it is our responsibility, our duty, to do more with less!
The Pressure
Many of the institutions we do business with have not yet come to grips with the reality of our conundrum.
The Decision
Help or Hinder?
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